ICRIER Survey: Ecommerce Helps MSMEs Get Finance
Why in the news
Selling online improves MSMEs’ chances of credit, while offline firms struggle with markets and funds.
Key facts
| Size | Found ecommerce useful for finance | Did not use government schemes |
|---|---|---|
| Micro | 48% | 54% |
| Small | 55% | 55% |
| Medium | 60% | 60% |
- Overall, 51% of ecommerce-integrated MSMEs reported such benefit.
- 30% secured collateral-free loans.
- Non-integrated firms: market access and financing are the biggest hurdles.
Why lenders see MSMEs as risky
- Lack of credit data.
- Low fixed assets: average ₹3.18 lakh per MSME in 2022-23; ₹2.15 lakh for manufacturers.
- Unsecured loans were only 25% of bank credit to MSMEs as of March 2024.
- Private banks charge high interest rates.
Way forward
- Promote ecommerce adoption.
- Raise awareness of government schemes and ease access.
- Better credit evaluation models to cut borrowing costs.
Exam angle
- Survey by: ICRIER.
- Unsecured loans: 25% of MSME bank credit (March 2024).